In Explosive Scandal, Head Of Polish Central Bank Recorded Promising Assistance To Government If Minister Fired

Remember when conventional wisdom said central banks are apolitical and impartial, and anyone who claimed that the world's money printers (which in the New Normal of failed fiscal policy means the only source of stimulus, and thus infinite political leverage and an existence "above the law") are in fact the most political and partial entities was, what else, a conspiracy theorist? Well, there goes another conspiracy theory, replaced by conspiracy fact.

Yesterday, Polish magazine Wprost released a recording of a meeting between Interior Minister Bartlomiej Sienkiewicz and central bank Governor Marek Belka which took place in a Warsaw restaurant in July 2013. In the recording, Belka told the minister he would be willing to help the government out of its economic troubles if the finance minister was fired.

According to Bloomberg, which released the details earlier, Sienkiewicz allegedly heard on recording asking Belka if central bank would be able to support government 8 months before election if slow economic recovery and weak budget situation coincide with surge in support for opposition Law and Justice party.

Belka was then heard discussing “non-standard” support that includes “very significant change” in central bank status, and was heard saying he’s ready to help under condition that Finance Minister Jacek Rostowski is replaced by "technical and apolitical finance minister, who will find full support in the central bank."

Odd: an elected government official being replaced by unelected technocrats who get the blessing of bankers, pardon, central bankers. Where have we seen that before? Oh wait, pretty much in every insolvent European country whose government is merely a group of sock-puppets designed to perpetuate the lie of democracy, and where all the relevant decisions are made by Mario Draghi.

Needless to say, Belka has been in damage control mode for the past 24 hours. Not because of what was on the tape, but because, just like the taboo topic of gold manipulation finally exploding on the public scene last month, so the fact that central banks are really the only "governing" force, subject to zero checks and balances (remember: "Get to work Mr [central banker]"), in a world in which the farce of democracy has been completely eradicated has finally been revealed to the entire public.

Some politicians had demanded the resignation of Belka, a long-standing political heavyweight who is generally seen as a safe pair of hands by investors with assets in Poland, the European Union's sixth-biggest economy.

In the first public comment from the central bank since the tape first emerged about 24 hours earlier, it issued a statement denying Belka broke the rules that stipulate the central bank must be independent from the government.

"Governor Belka gave a signal in this statement that he does not intend to resign," said Rafal Benecki, chief economist with ING Bank Slaski. "It seems to me there will be no market reaction, or it will be very insignificant."

But several economists and sources close to the government said the tape - especially derogatory remarks Belka made about the central bank's rate-setting council - could make it harder to conduct monetary policy.

Elzbieta Chojna-Duch, one of the members of the council, told Reuters it was a "difficult situation", and said it was likely Belka would give an explanation at the council's next scheduled sitting, on Tuesday. Belka is chair of the council.

In its statement, the bank said Belka expressed deep regret for the language he used in the conversation, with Interior Minister Bartlomiej Sienkiewicz. It said he "apologises to all who have been affected and offended."

But the bank denied Belka, 62, a former prime minister and finance minister, had done anything more serious.

Well of course it denied: the central bank after all is the supreme governing institution in the New Normal, a world which is run not by government but by banks. As such, it only makes sense that the unelected central bankers are convinced they are above everyone, and certainly the law.

It said Belka had met Sienkiewicz last year and the conversation touched on then finance minister, Jacek Rostowski.

"In the private part of conversation Marek Belka informed Bartlomiej Sienkiewicz about the lack of cooperation from the minister of finance," the bank said.

And here come the excuses: it was taken out of context:

"From the nearly two-hour conversation, only a few minutes of out-of-context passages were published that talk about the stability of the financial system."

This was manipulated to try to present the remarks as exceeding the powers of the bank's governor, "which never happened", the statement said.

Of course not, but not for the bullshit reason given: simply, the power of the bank's governor has no limits (after all they are the source of all the prosperity and wealth effect, without them government would crash and burn: they are above the law) and thus can not be exceeded.

So, technically, the central bank statement was correct.

Speaking of the derogatory remarks about the rate council, here is what the untouchable central printer said:

"Of course, we have this fucking Monetary Policy Council," says the man in the recording, who sounds like Belka. "But we are able to play with it."

The recording also has Belka making disparaging personal remarks about one of the council members, Jerzy Hausner. Hausner told Reuters on Sunday he had no comment.

Because how dare a fucking monetary policy council have opinions that differ from those of the uber-central planner, who works merely on behalf of a few other central, and commercial banks. After all, it is no longer "we are from the government and are here to help you." In the New Normal, it is all about the chief economist central banker - usually the person who hasn't worked one day in the private sector- who can't wait to be of help for the common man. And some still wonder why the world is one step away from total collapse.

What happens next?

Prime Minister Donald Tusk has said he will comment on the tape on Monday at 3 p.m. (1300 GMT). An economist with a major bank, who did not want to be identified, said "it is hard to imagine that Belka would still be able to work together with the MPC".

The central bank is in the process of deciding whether to cut rates, which would mean dropping its policy of keeping them flat until the fourth quarter.

Markets where Poland's zloty currency is traded were operating on Sunday, but there were no transactions taking place, according to Reuters data.

In other words, nothing happens next, because in the New Normal the only thing that shows if something has "changed" is apparently the market's reaction. The very same rigged and manipulated markets which are now exclusively under the control of, you guessed it, the central bank.

And now, go back to buying stocks and giving your praise to the only (unelected) leaders, pardon, despots, that matter: central bankers.

Are you are the asshole that keeps selling MY bar to different people every time I turn around?

I'd fire my Bouncer -who is a moonlighting Cop- for letting You in here all the time; except He would immediately toss the stolen gun HE used to shoot the drug dealer that refused to pay Him protection money onto a table and drag Me away to the prison His Brother works at...

Yeah, I am going with the disobedience thing first...right after I pay this revenue stop...er, traffic ticket. I just finished defending my three IRS challenges this year, too, (all true, BTW)...but I am going to get around to the disobedience thing the next time.

I actually agree with your posts, CH1, although there is a fair counterpoint to them.

A lot of tough guys ready to man the guillotines but not as many ready to opt out of the system - by paying no taxes - because they might have to suffer a fall in their 'standard of living', where standard of living is just euphemism for how many things one owns.

Uh huh, because in your view that's a realistic option for the 100MM+ US citizens who fill out a W2 for their employer...who then withholds taxes on their behalf every pay cycle.

Hey! I know! They should all quit!

The State tax collectors require me to file sales tax monthly. Due to an accountant's error we were late a few years ago. The State paid a visit to one site and threatened to padlock the doors if we didn't rend unto Caesar by the end of the week. And you want the 145MM employed US citizens to find a way to become tax protestors???

Please suggest something more substantial than "stop paying taxes." That's been poseted herein hundreds of time in the last 5 years.

And you want the 145MM employed US citizens to find a way to become tax protestors???

No, you don't need to protest taxes that are not asked of you. I have a feeling you are on a different wavelength here. I am suggesting all Americans quit, not sarcastically either. I am also aware of the consequences, material mostly, of doing so. If you have children it's only more reason to do it, don't indoctrinate your kids into a system of serfdom, just because you were.

So are we all finally clear? It's not democrats, republicans, whigs or Green Party members controlling our governments. So now we can accept reality and plan for the eventual crash. No more red/blue comments OK.

That's akin to saying "I blew Barry in the voting booth twice but now I want everyone to stop reminding me of it"
No, you don't get off that easy but I hope you learned your lesson and really mean what you espouse and refuse to blow the entire blue team bus the next time it rolls into town.

I would have to concur with CH!. Killing won't solve any problems in a systemic corrupt system. Someone else will simply take the targets place. Simply stop cooperating with it, that is the key. As an example, look at what Russia and China are doing. They simply stop using the financial institutions which are the focal point of the corrpution and are making their own trade deals, peacefully.

Remove the financial institutions power to simply print money, without contributing to society and they are as threatening as a wet wash rag.

Even the political powers that be will be able to recognize the difference between a wet wash rag and freedom and liberty and justice for all.

It is imperative violence is not escalated to take these bankers down. They have way too many people involved in military activities to draw upon. Don't forget, we do not fund the military through tax dollars, we fund it through printing money. Banksters own the military. Don't wake that Dragon or there will be nothing left to save.

You are not dealing with sane people here, and since I do not consider Banksters to be sane, they therefore will use any force considered appropriate, including nuclear weapons to preserve the right to print money if they have to confront violence against them or their ilk.

Insane till the end, these banksters will protect their right to NOT CONTRIBUTE ANYTHING TO SOCIETY, even if it means deploying nuclear wepons.

So:

1) Do not use JP Morgan bank, or any of the Federal Reserve banks for business. Let them try and enforce a negative interest rate on zero deposits, or fewer deposits to cover the revenue needs on their corrupt activities..

2) Do not vote in any election. If enough people do not vote, something will be very wrong eventually when a winner emerges from an election with no or few voters. That wrong will be illegitimate elections which I think will be pretty obvious.

3) Force their hands in non compliant ways. Do exactly the opposite of what they tell you to do. For example, grow your own food for either some or all of your food budget. When they come to arrest you, or put you in prison or confiscate your property by their corporate minions, post it on the internet. Let others know what they are doing. When Cats Playing with Yarn is replaced by "Arrested by Monsanto Food Gestapo" on youtube, people might wake up.

Each one of these is incredibly peaceful, yet will force these banksters to call upon their vast minion horde in government to crack down even further, possibly not according the their own agendas.

That is key here, because if things do not go according to plan on Bankster timelines, interesting and unplanned things can happen, which results in the limit or over use of power.

The situation will probably take care of itself because once the easy looting is done, the Banksters will probably turn on themselves like Lions eating their own young.

"Simply stop cooperating with it, that is the key. As an example, look at what Russia and China are doing. They simply stop using the financial institutions"

So you want Joe Citizen to finance his home or auto by offering animal pelts to the dealer/owner? Maybe offer to paint their house and cut their grass for the next 10 years?

Oh, I see, maybe you meant opt out by opting into credit unions for example? As if they don't trade in Jewbux.

"Simply stop cooperating with it, that is the key"

Um, could you offer some concrete and practical examples for the people to follow? Failing that, you might as well say we should all close our eyes and click our heels together and repeat "There's no place like home".

George Washington & Co DID NOT sit around a campfire and sing kumbyah. Peaceful revolutions are rare, and if you care to name some successful ones I'll cite 20 violent revolutions for every 1 you mention.

Punch someone in the face and they will fight back. Sometimes that's what it takes to wake the people. Maybe that's what the people need. Waco didn't wake up enough of them but enough Waco's will. True it doesn't always end so good for all of them, but if you wait passively with your "opting out" (whatever that means) you might just find yourself up to your shoulders and unable to muster any defense whatsoever.

If you think that posting videos on youtube will accomplish anything, then 1) you forget that you do not own either the Internet or your ISP, and 2) you must be oblivious to the thousands of videos already posted which clearly outline police brutality and political corruption of the most treasonous order. They have not worked thus far. The number of views is pathetic.

Advocating non-violence makes you sound more like a shill for those who want to both 1) continuing raping our wallets, our lives, and our souls with impugnity, and 2) save their hides when the masses do awake.

You are missing the point. Everyone here on ZeroHedge knows the numbers. You do not need to crash the system and cause massive problems, by EVERYONE doing anything. You just need a critical mass of some small percentage doing SOMETHING in an organized way.

The system is so corrupt, and planned, that it is lit up like a old Xmas tree, you take out a few bulbs, and most of the tree will stop lighting. You by no means need to take all of the bulbs out, or even a large percentage.

So who cares if 95% of the masses are stupid. Looking at the numbers all we need are a few percentage points in key areas of demand in the economy, where we know the banks are weakest.

We all know if it wasn't for QE the banks would tank. What do you think a few percentage drops in ATM, Deposits would do?

It would be catastrophic given the condition of the banking system. Let them try and collect negative interest rates on these banks when they start losing even 2% of their fees and bank deposits!

Same thing with these Globalist operations to concentrate wealth such as WAL*MART. A 2% reduction in consumer purchases would basically bankrupt the entire supply chain with its screwy LEAN Just in Time Supply chain nonsense.

Essentially I am talking about using the system that these elitist Ivy League MBA's built for themselves and their ilk against them!

Take a few percentage points away from different sectors and the whole thing will come down.

A few people not banking at JP Morgan Chase, a few people stop buying food and growing it for their communities, a few people generating their own power in a community, a few people stop driving their cars.

It adds up, and the whole freaking concentration of supply and distribution in the hands of a few companies, in Banking, Big Agriculture or Energy will set into motion far larger events than what can be controlled.

If only 2% of the US population did all of these things it would take the entire Banking sector and essentially destroy it.

Force their hand to start arresting innocent people for not depositing their cash in the bank!

The more rules they make for everyone else will work FOR a collapse of the existing economic and political system.

Seeing as how you have, without knowing me, decided to define me in your mind, I'll take a stab at doing the same:

You strike me as the kind of guy that would respond to the person who just beat the fuck out of your wife/mother/daughter by sending them a strongly worded letter and lulling yourself to sleep satisfied in the belief that "you taught them a lesson".

If you're gonna stereotype me, then I'll stereotype you. Is that "civil" enough for you sweetheart?

Calm down buddy take a breath. You don't have the guts to stop funding the warmongering governments but you do consider yourself revolutionary... riiiight.

Let's face it tough guy, people like you would never opt out of this corrupt system of serfdom because you can't handle the fall in living standards - a.k.a. shit you own - that inevitably comes with living and subsisting outside of the system. I'm not saying there is anything wrong with that and you are certainly in the majority, but if you don't have the stomach for disobedience your bellicose rhetoric smacks of a chihuahua barking at a pitbull locked up behind a fence, because you sure as hell don't have the stomach for a violent overthrow.

The dirty work of a violent overthrow is never committed by someone who is too comfortable with the system to even disobey.

"You don't have the guts to stop funding the warmongering governments"

"Let's face it tough guy, people like you would never opt out of this corrupt system of serfdom because you can't handle the fall in living standards - a.k.a. shit you own - that inevitably comes with living and subsisting outside of the system"...says the blowhard using electronics to post on the internet. Wait, lemme guess - you're a farmer and don't rely on anything or anyone from the "outside world", well, except for the internet. WHAT A FUCKING BLOWHARD.

May I take it, then, that YOU have opted out of this corrupt system that no one else has the guts to?

Do tell, and if you're in the USA then tell the other 300MM there how to "stop cooperating".

You folks rail against those whom you call 'internet tough guys' but in your collective dozens of paragraphs not one of you has offered up a single concrete and practical example of how to opt out. You simply say "stop cooperating" (or "stop voting" as if that would do a thing). If you have all the fucking answers then please suggest just ONE before you complain about the suggestions of the 'tough guys'.

I own a macbook, so? I also own an electric guitar w/amp, a vaporizer and a blender, but I never claimed to be a luddite (although that is the entirety of my electronic posessions, no phone, TV or whatever else is deemed essentials these days).

I don't understand how this implies I have not opted out of the system of serfdom. I am also not calling for people to, I am merely suggesting to the real blowhards that perhaps they don't have what it takes to mount a revolutionary attack if they don't have what it takes to at least detach themselves from the system they are supposed to be revolting first.

To stop co-operating, as I have already said, quit. Don't work. Don't get paid, you don't need to be dependent on the ever decreasing pittance offered by employers, humans have survived for at least 200k years without this turd of a system I am confident they can do it again. If you own a business, give that up. That is the how, whether you choose to or not is up to you.

No kidding. I wonder whether the blowhard would allow me to chain him in my basement and then try to talk me into letting him go. I'll also put a gun within arms reach. 3 days later he'd shoot me given the chance. Nonviolent revolutions have generally "succeeded" either because the previous regime was flawed and couldn't support the country (but had already sucked the treasury dry), or because behind the peaceful revolution was the threat of a violent one, or because the only thing that really changed was the nameplates of the officeholders.

The point there is that I don't have to listen to a fucking word he's saying while chained in the basement, but somehow he thinks I'll give a shit and see the rationality of his argument and with that epiphany I'll free him. I don't have to listen and I don't give a shit and neither do the Central Bankers (...to bring things back to the original topic).

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation...

tell me something. How many times would a person have to smack you before you cease to be "civil"? 1? 10? 100? 1,000,000 times?

So CH1 is a 'pussy' for believing in disobedience over compliance? Okay then tough guy, tell us, how many bankers and politicians have you slain lately? I'll bet not one for every year you have dutifully submitted to paying your taxes. Now, let's think of paying taxes as being smacked (in reality it's much worse). How many times would a person have to smack you before you cease to be "civil"?

How many tough guys here have called for a violent overthrow from their work computer? heh

Fact is revolutions only happen when a large majority literally have nothing to lose - no shelter, no food, no work, no rights, no freedom - you don't see many portly revolutionaries generally. So if your plan is to put up with this system until that time then you plan to be fucked out of everything before you do anything. To me this is not a brave or tough stance, it is the apotheosis of submission.

You just described the State and you will be forced to react to their uncivil actions sooner or later, considering they claim your children and your possessions as their own the question is not if but when?

Getting killed is the end state of disobeying. Try it. Disobey, stop paying taxes, refuse to obey unconstitutional laws. The will take everything from you, the will put you in jail. And what will happen if you refuse to obey the police when the come to take you to yail. Tel me, what do you think wil happen, you brain death idiot? The will shoot you, you will be killed if you disobey and try to defend yourself. That is the end result, death!

All political options have already been in power in Poland since the restitution of independence in 1989: centrists (UD/UW), pretend liberals (in european sense, not american - /KLD, PO), right wing crackpots (LPR, PIS), neocommies (SLD, PSL), catholic-democrat fucknuts (AWS, BBWR), trade unionists (UP, S80), even conservatives briefly (UPR), and recently pretend-anti-establishment crowd (RPP). They all are just a distraction.

"But several economists and sources close to the government said the tape - especially derogatory remarks Belka made about the central bank's rate-setting council - could make it harder to conduct monetary policy."

Inside the mind of economists: it's not about unethical behavior or corruption, it's about efficacy. This is what's wrong with the world, no fucking principles, just whatever works.

head of central > head of goverment or head of country - so you need to elect crazy dictator,so he can say "fack off" to central bank or people need to wake up and stand up for your own country because you know - election is pointless

I may not have read the article carefully enough but I try to reconcile things to the most likely story.

Here are some possibilties as I see it.

On the positive side: Given that we all have central banks, today, June 15th and they are there to intervene for our benefit in the currency and economy sometimes idiots do get in the way. They, the government might ask for help and at the same time prevent the help or offset it through their own stupid policies. So, you want certain help but block it. Socialists block libertarians and vice versa. I cannot really see this in the infomation given.

On the negative (where I tilt): You give people power...huge power and then you hope they are all "good guys" and will not use it to manipulate. The same theory that says people suck and must be ruled for their own benefit assumes that none of the people that suck actually get into power. Realisty is that they are MOST likely to get into power as it is catnip for them. A libertarian type hates government and is unlikely to ever be a central banker by definition.

Next, even if you believe in government; it's wisdom and goodness and most of all...genius you have to believe they actually know what to do and can do it. I assert they do not know what to do, cannot do what they say and actually are often bad people with another agenda that includes your well being only way down the list as a subset of theirs. These central planners cannot run an economy or even government any more than a team of botanists can run an acre of Amazon forest and make it better. They would have to be gods with infinitie knowledge, wisdom and goodness. Those things really appeal to them and give them a woody as they imagine that, but unfortunately they are no differnent than us. They have bad kids, mistresses and substance abuse issues like the worst of us.

The solution is to not give them power and take our own liberty and manage our own lives.

It's also the country that actually did loose 6 million of its people in WW2. And despite the fact the Nazis killed 5 million versus the Russians 1 million, they're all for the Nazi regime in Kiev.

I'm sure there's a good Polish joke in there, but the sicker truth is that a good chunk of this insanity probably comes from the Polish government's queer and perverted competition with UK to be the US's best bitch in the EU.

I'm sure there's a good Polish joke in there, but the sicker truth is that a good chunk of this insanity probably comes from the Polish government's queer and perverted competition with UK to be the US's best bitch in the EU.

And not to stop half way, Polish government is going after the remaining 49% in the private retirment funds as well. Participants in the OFE (Polish private retirement funds), have until July 31, 2014 to file a request with ZUS (Poland's equivalent of the U.S. Social Security Administration) if they still want to keep contributing to their private retirement funds. If they don't file it (or their request simply gets lost), they will be automatically enrolled 100% in the government run retirement program.

I'm Polish and still living in Poland so, straight from the horse's mouth:) - I think this could develop the way the truth tapes developed in Hungary in 2006, was it? Early election and a very anti-Russian government with the brother of the downed president as PM. Such a government has the ability to deal with Putin the way Nixon dealt with China. Also, the tapes help to rush through the parliament a bill to allow the Polish Central Bank to do QE. Basically, Poland is getting ready for Lehman 2.0. Interesting times, people:) Much appreciate the community here, cheers:)

On a PS, the CB Pres admitted that a couple of the regional airports are funded illegally, "under the table" in his words, but that sort of thing isn't getting too much play, from what my sources tell me....